Things to Avoid While Buying a Home
What's better than buying a bunch of new furnishings to adorn your future home? Nothing. But buying big ticket items before closing could be trouble. It's best to remember that until closing, your lender is watching your accounts very closely. Below you'll find a list of things to avoid during this crucial time of your home purchase.
Don't throw your money around. Although you may be listing ways to turn your new home into a showplace, try to stay away from major purchases like appliances, electronics, or expensive furnishings. We also recommend that you avoid vacations and vehicle purchases until your loan closes. Using plastic to buy furniture could jeopardize your lending process by altering your numbers dramatically. It's even a red flag to make those large purchases with cash. Lenders are examining your available cash when considering your loan.
Don't look for a new career. Your recent job history should show stability. Getting a new job may not jeopardize your ability to qualify for a loan - especially if you are getting a bigger paycheck. But for some, changing jobs during the loan application process could bring concern and hinder your application.
Don't switch banks or move money around in your bank accounts. Your lending institution will ask for recent bank statements for your accounts: savings, checking, money market, and other liquid assets. The lending institution looks for a consistent rise and fall of your money each month, in the interest of ruling out fraud. Switching banks or moving finances elsewhere - even if its just to consolidate funds - might hinder the review of your funds.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, made out directly to him. Until closing, the good faith money remains yours. Although your FSBO seller might not realize this, any good faith money should be used for the buyer's closing expenses. It's best to put the funds into a trust account, or get an attorney to hold them until closing. The purchase agreement should specify who gets the deposit if the transaction falls through.
Team USA Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 218-237-5128.